What is a compliance audit?

A compliance audit is fundamentally centered on assessing an organization's adherence to regulatory guidelines and its internal policies. This process involves examining records, procedures, and operations to ensure that the organization is following the necessary legal standards and regulations applicable to its industry. A compliance audit seeks to identify areas of non-compliance, assess the effectiveness of compliance programs, and provide recommendations for improvements to mitigate risks and enhance adherence.

In contrast, qualitative analyses of employee performance focus on evaluating individual work capabilities and contributions, which do not align with the broader focus of compliance audits. Tools aimed at measuring employee satisfaction gather feedback on workplace morale and engagement rather than compliance with external or internal standards. Evaluating market trends pertains to analyzing consumer behaviors and industry movements over time, unrelated to the compliance-related activities that organizations must uphold. Hence, the definition that fits a compliance audit most accurately is the review of adherence to regulatory and internal policies.